$850M Casino Deal Expands MGM’s Reach into NYC Region
MGM Resorts and MGM Growth Properties have agreed to acquire the Empire City casino and racetrack in Yonkers, NY for a total of $850 million, including a $625-million sale-leaseback. For MGM Resorts, which will operate the property post-closing, the deal will expand its reach into the New York City region.
“With Empire City’s approximately 40% share of gross gaming revenues in the market, we believe there are significant opportunities for MGM Resorts to further drive growth,” said Dan D’Arrigo, MGM Resorts EVP and CFO. “We believe the transaction will be value-accretive within its first year of closing.”
The deal calls for MGM Resorts to pay an additional $50 million to MGM Growth if Empire City is awarded a license for live table games before Dec. 31, 2022. For the 12 months that ended March 31, the casino reported about $230 million in net revenues, and $70 million in adjusted EBITDA.
For comments, questions or concerns, please contact Paul Bubny
- ◦Sale/Acquisition